Bitcoin (BTC) sellers returned during Asian trading hours given the strong resistance near the $40,000 level. The cryptocurrency was trading at around $38,000 at press time and is down 5% over the past week. Initial support is seen at around $34,000 and $36,000, which could stabilize the pullback.
The relative strength index (RSI) on the four-hour chart made a series of lower highs as upside momentum slowed. Short-term buyers responded to oversold conditions on Wednesday but failed to push past $40,000 resistance.
Initial support is seen at $36,000, which is near the 100-period moving average on the four-hour chart. Buyers will likely defend support above $30,000 as bitcoin remains in a consolidation phase.
Bitcoin’s intermediate-term downtrend remains in effect despite the near 30% short-squeeze rally over the past two weeks.